India electricity demand hits 15-year February high as peak nears summer levels

India's electricity demand rose roughly 2 percent year-on-year in February to about 133 billion units, marking the highest consumption for the month in at least 15 years, according to a report by Crisil Intelligence published this week.

Government data pegged the figure at 132.99 billion units, up 1.86 percent from 130.56 billion units in February 2025. The surge was driven by warmer-than-normal temperatures across much of the country and steady industrial activity, even as the broader fiscal year has seen only modest demand growth.

The Indian Meteorological Department reported that February saw the country's third-highest minimum temperature and fifth-highest mean temperature since 1901, with no cold waves recorded during the month.

Between February 19 and 25, maximum temperatures in parts of northwest India and the western Himalayan region exceeded normal levels by 4 to 6 degrees Celsius, while minimum temperatures ran 2 to 4 degrees above normal across most regions. The warmer conditions reduced the use of heating appliances but increased cooling demand, particularly in western and central India.

Manufacturing activity added to electricity consumption. India's purchasing managers' index for manufacturing climbed to 56.9 in February from 55.4 in January, with industrial and commercial consumers accounting for about half of the country's total power demand.

Peak Demand Approaches Summer Levels

Peak power demand during February reached 244 gigawatts, slightly surpassing the summer peak of 243 GW recorded in June 2025 and falling just 0.5 percent short of January's 245 GW peak.

Total power generation rose an estimated 2.4 percent to 145 billion units, with renewable energy maintaining a growth streak supported by 39.6 GW of new capacity added between April and January of fiscal 2026.

Hydro and nuclear generation jumped 15.5 percent and 17.3 percent, respectively, though coal still accounted for about 73 percent of total output.

Modest Outlook for the Full Year

Despite February's record, cumulative power demand for the first 11 months of fiscal 2026 grew just 0.9 percent year-on-year, weighed down by a prolonged monsoon season and an unfavourable base effect, according to credit rating agency Icra.

Crisil projected full-year demand growth of 1 to 1.5 percent, reaching between 1,705 and 1,715 billion units. The Central Electricity Authority has forecast peak demand of around 267 GW in June 2026, according to the Indian Energy Exchange, suggesting the grid will face a sterner test as summer approaches.